What Is a Second Chance Bank Account?

I knew a lady who did not have any idea how to manage her checking account. She was continually bouncing checks. Her concept was that she made a pretty good salary, so she didn't have to worry about her checking account balance, and she just kept writing checks. She bounced checks to her landlord. She bounced checks for pizza! She bounced checks all over town. She had more bounce in her checks than the Harlem Globetrotters have in their basketballs.

Usually a bank will call a halt to this kind of abuse on a checking account at some point. One of the stopping points is when a checking account stays at a negative balance for so many consecutive days. For some banks, it is 90 days consequentially.

Then, the bank reports the closed account (for NSF's, non-sufficient fund checks). When the customer goes to another bank and tries to open a new account, that report shows up and the new bank will refuse to offer a checking account. However, if the bank is one of those that offers Second Chance Checking Accounts, the customer may open an account with some stricter requirements.

Usually they will be warned that if the customer overdrafts the account a certain number of times, the account will be automatically closed. There also may be a requirement to put extra money in the account which will not show up in the bank account balance. This money is there for the protection of the bank if overdrafts occur.

The restrictions on Second Chance Deposit Accounts vary from bank to bank, and not all banks offer this kind of account.

Deposit accounts are a privilege, not a right. And, overdraft fees are legal. There has never been a successful class action lawsuit against overdraft fees. Therefore, it is necessary for banking customers to respect their checking account and keep an accurate balance for their account at all times.

When a customer has abused their banking privileges to the point that they are no longer welcome with any bank, the customer has a problem: Where will they get their checks cashed? Whether it is an employment check or a personal check written to them, banks will not cash a check that is written to a third party. The only option then may be an expensive check cashing service.

There is one simply rule that will help every customer avoid overdraft fees: never write a check or use the debit card if the money is not already in the account! It seems simple, and it is. But, many bank customers do not understand how necessary it is to follow this rule.

Real time processing of transactions makes it easier for customers to avoid problems, but there are still certain types of transactions that may not show up for a few days. If the customer does not keep an accurate account balance, by correctly adding each deposit as it is made, and each debit card transaction and/or check as it is made or written, and immediately subtract that amount so that they know exactly how much is in the account, there is the ongoing possibility of overdrafts, and the responding NSF fees.

Avoid the necessity of seeking a bank for a Second Chance Bank Account. Maintain an accurate account balance transaction by transaction, and you will save yourself embarrassment with businesses and the cost of overdraft fees on your checking account.

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